Timbercreek Investment Inc Case Solution

Firstly, he can leverage on the long relationship with the national bank to borrow funds. It is pertinent to mention that the company is already availing credit facilities from the bank. Secondly, the partners can inject more money into the company. Lastly, generating funds through offering ownership to private investors.

From the fore stated options, the first option is in the most beneficial for the company. The fact that the interest on bank debt is tax deductible is the major reason for opting for the same. The increase in bank debt will result in higher interest cost which would ultimately reduce the tax payable to the company.